Question

true/false
indicate whether the statement is true or false.

1. sole proprietorships tend to be small in size although profitable making up about 25% of all business.
2. corporations have to pay a special corporate income tax.
3. the limited partnership is the most common type of partnership.
4. partnerships conduct about 90% of all business in america.
5. charters tend to be difficult and expensive to obtain.

Explanation:

• 46: Sole proprietorships in the US are often small - scale and make up a significant portion of businesses, so this is true.
• 47: Corporations are subject to corporate income tax, a distinct tax type, so this is true.
• 48: General partnerships are more common than limited partnerships, so this is false.
• 49: Partnerships do not conduct about 90% of all business in America; corporations and sole - proprietorships also play large roles, so this is false.
• 50: Obtaining charters can be a complex and costly process, so this is true.

Answer:

1. True
2. True
3. False
4. False
5. True